Edward Balls: I have laid before both Houses of Parliament a report into the economy, efficiency and effectiveness with which the Financial Services Authority (FSA) has used its resources, when discharging its statutory functions. This review was undertaken by the National Audit Office and is the first to be carried out under section 12 of the Financial Services and Markets Act—the Act that established the FSA, five years ago.
	The remit of the review—which was arrived at following consultation with key stakeholders of the FSA—address five broad areas of the authority's work:
	internal performance management;
	external joint-working within the UK;
	influencing and representation internationally;
	financial crime; and
	financial capability.
	Copies of the report are available in the Vote Office and the Printed Paper Office.

Adam Ingram: The Ministry of Defence has agreed to lower the threshold for the advertising of MOD contracts. This will give greater encouragement to small and medium enterprises (SMEs) to enter MOD business and is designed to further enhance the visibility and transparency of the UK defence equipment market.
	Currently 'non-warlike' requirements valued in excess of £93,000 are advertised in the Official Journal of the European Union (OJEU) and the MOD Defence Contracts Bulletin. 'Warlike' requirements are only advertised in the bulletin if their value exceeds £500,000. In addition to this, 'warlike' requirements exceeding £685,000(€1 million) are advertised on the European Defence Agency's Electronic Bulletin Board.
	The changes to this will be phased in. On 30 April 2007, the threshold for 'warlike' requirements will be lowered to £93,000. On 30 June 2007, this threshold will be lowered once more to £40,000. The threshold for 'non-warlike' requirements will also be reduced to £40,000 on 30 June 2007. Furthermore, from 30 June, MOD project teams will be encouraged to consider advertising requirements with values as low as £20,000. This change could generate up to 7,000 additional adverts a year.
	In line with one of the key themes of the defence industrial strategy, this is one of a range of initiatives aimed at making the MOD easier for small and medium companies to do business with. The MOD is committed to being SME-friendly as these companies play a crucial role in UK defence business and represent a significant core of direct suppliers to the Department. For example, in 2005 just over half of the defence contracts let were placed with SMEs, with a value of over half a billion pounds. Consequently this change has been welcomed by the defence trade associations.
	The MOD already leads the way in the transparency of its tender and contract opportunities and procedures. In instigating the change we are being consistent with the general direction of EU policy and the work of the Office of Government Commerce. This change complements the European Defence Agency code of best practice in the supply chain as well as the recently launched electronic bulletin board step 2. It is hoped that this will encourage similar moves by our European colleagues.
	It is a significant development and one which it is hoped will promote a dynamic and competitive supplier base.

Geoff Hoon: My right hon. Friend the Foreign Secretary and Sir John Grant (UK Permanent Representative to the EU) represented the UK at the General Affairs and External Relations Council (GAERC) in Luxembourg on 23 April 2007.
	The agenda items covered were as follows:
	External Relations
	World Trade Organisation/Doha Development Round
	External Relations Commissioner Benita Ferrero-Waldner briefed the Council on negotiations between the G4 (EU, United States, Brazil and India) and with the G6 (the G4 and Australia and Japan) in New Delhi on 11 and 12 April.
	Gulf Co-operation Council
	The Commission briefed the Council on negotiations between the EU and the Gulf Co-operation Council (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates) on a Free Trade Agreement.
	The Council also took note of preparations for the EU-Gulf Co-operation Council Ministerial in Riyadh on 8 May.
	EU-US Summit
	The presidency briefed the Council on negotiations with the US ahead of the Summit on 30 April including plans for a political declaration and proposals for strengthening transatlantic economic relations and energy and climate change.
	There was a broad-ranging discussion in the Council focusing on energy and climate change and visa waiver arrangements.
	My right hon. Friend the Foreign Secretary intervened to underline the Government's support for the presidency's efforts in taking forward work on climate change, briefed partners on the recent UN Security Council debate on climate security and suggested Ministers look further at ways the EU could take forward work in this area.
	Sudan
	The Council discussed Sudan on the basis of a briefing by UN Special Envoy for Darfur, Jan Eliasson, who underlined the EU's role in humanitarian, development and peacekeeping assistance, including financing for the African Union Mission in Sudan. Eliasson also welcomed the Government's initiative to discuss the situation in Sudan at the UN Security Council last week.
	The Council welcomed the agreement between the Sudanese Government, the UN and the African Union on the implementation of the UN's heavy support package, the second stage of a three-stage plan to restore peace to the Darfur region. The Government and other member states supported the need to continue diplomatic engagement with the Sudanese to accept the third stage, the deployment of a full African Union/UN peacekeeping force, as well as the ceasefire and reinvigorated political process agreed in Addis Ababa last November. However if the Sudanese Government failed to comply; the EU should be prepared to consider further measures. There was broad support for this approach in the Council.
	The Council adopted conclusions expressing concern at the appalling security and humanitarian situation in Darfur and stressing the urgent need for an inclusive political agreement to solve the conflict while reiterating the Council's readiness to consider further measures notably, in the UN framework, against any party which obstructs implementation of the agreements already reached with the Government of Sudan.
	Zimbabwe
	The Council discussed the deteriorating human rights and political situation in Zimbabwe while welcoming the mandate given to South African President Mbeki by the Southern African Development Community to mediate between the opposition and the Government.
	Following a UK proposal, the Council adopted conclusions extending the EU's visa ban list to include two additional individuals with responsibility for recent violence and human rights abuses.
	Somalia
	The Council discussed the renewed violence in Somalia and adopted conclusions stressing the importance of implementing United Nations Security Council Resolution 1744 to address the political, security and humanitarian challenges faced in Somalia; expressing grave concern at the escalation of the conflict and urging the Transitional Federal Government to convene the National Reconciliation Congress as soon as possible. The conclusions also reaffirm the Council's support for the African Union Mission in Somalia (AMISOM) while recalling the EU's contribution of €15 million.
	Central Asia
	The presidency briefed the Council on the draft EU Central Asia Strategy including the Foreign Ministers meeting with the five Central Asian countries in Astana on 27 and 28 March.
	The Council adopted conclusions taking note of the second round of expert talks with Uzbekistan on Andizhan in Tashkent on 2 and 3 April and decided to enter into a regular, result-oriented human rights dialogue with Uzbekistan. The Government support these talks as a means of encouraging Uzbekistan to make concrete progress on human rights concerns.
	Iran
	The Council discussed relations with Iran.
	The High Representative for the Common Foreign and Security Policy, Javier Solana, briefed the Council on his contacts with Ali Larijani, Secretary of Iran's Supreme National Security Council.
	My right hon. Friend the Foreign Secretary briefed the Council on the lessons learned from the capture of the naval personnel, emphasising the impact of strong international pressure, and thanked partners for their support.
	The Council also adopted a Common Position implementing United Nations Security Council Resolution 1747 and a Council Decision applying the travel ban and assets freeze in the Regulation to individuals and entities who meet the UN criteria in Resolutions 1737 and 1747 but who have not been designated by the UN. The Common Position also introduces a full formal EU arms embargo.
	Middle East Peace Process
	The Council discussed the Middle East Peace Process and looked forward to further work by the Quartet, including co-operation with Arab partners.
	The Council adopted conclusions: stressing the need for continuing support to the Palestinian institutions; endorsing the extension of the Temporary International Mechanism for a further three months; welcoming the Arab Peace Initiative as a major element in moving the political process forward; and the ongoing dialogue between President Abbas and Prime Minister Olmert. The UK supports the Commission's work to build Palestinian institutional capacity as a practical way for the EU to support the political process. The conclusions also demanded the immediate and unconditional release of Alan Johnston.
	The Council discussed Lebanon and the Hariri Tribunal.
	International Moratorium on the Death Penalty
	The Council discussed EU action on a global moratorium and eventual abolition of the death penalty. The Council will assess the outcome of an EU action plan adopted in February before deciding on possible next steps.
	AOB: Libya
	External Relations Commissioner Benita Ferrero-Waldner highlighted the possibility of renewed talks with Libya on the case of the Bulgarian medics.